At a glance:

  • Protects against specific accidental deaths like traffic incidents, falls, drowning, poisoning, fires, falls from heights, and violent crimes.
  • Typically excludes illness-related deaths, suicide, drug/alcohol incidents, war/military service, hazardous activities, criminal actions, and non-disclosed information.
  • Understand exclusions and inquire about coverage limits, waiting periods, and claims processes before buying.


As the name suggests, accidental death insurance is a type of insurance that provides a benefit upon the death of the insured person due to some kind of accident. It’s a cost-effective option when compared to life insurance, which covers death by any cause.



Benefits of Accidental Death Insurance


Accidental death insurance coverage is significantly cheaper than life insurance because it only covers death by injury; you will not be paid a benefit if the cause of death is illness-related.

Another major benefit that you should be aware of when purchasing an Accidental Death insurance policy is that if a person suffers from a severe injury during an accident and then passes away within 12 months of the accident, you are still eligible to receive the benefit.

Typically, the beneficiaries you choose on your policy will receive a lump-sum payment if you die in an accident. Accidental death insurance sums range from $10,000 to $1,000,000, depending on your circumstances and how much you wish to spend.



Why get Accidental Death Insurance?


Insurance cover is, without a doubt, one of the best options to protect your family if the worst were to happen. Many people lose their lives in accidents, which is very painful for their family members, both emotionally and financially. So, it’s always better to have some form of backup for your family. Good insurance coverage might not support your family emotionally, but it will definitely set them up to be supported financially.

While accidental death insurance offers significant coverage, knowing its exclusions is equally vital. Policies commonly outline specific situations or circumstances not covered, such as deaths due to illness, natural causes, or risky activities. Understanding these exclusions helps individuals comprehend the limitations of their coverage, enabling them to make informed decisions.



Accidental Death Insurance Coverage and Exclusions


This part aims to provide comprehensive insights into the nuances of coverage, exploring the fine print, common exclusions, and essential considerations. By unravelling these details, readers can gain a thorough understanding of their policy, ensuring they maximise its benefits while being aware of its limitations.

Overall, this article aims to empower readers with detailed knowledge, enabling them to navigate the complexities of accidental death insurance coverage and exclusions effectively.


Also Read: The importance of accidental death insurance due to rising mental health claims


Covered Accidents and Events


Accidental death insurance is designed to provide financial protection in the unfortunate event of a policyholder’s death resulting from specific accidents or incidents. The coverage extends to various scenarios that are categorised as accidental and unforeseen. These typically include, but are not limited to:


Traffic Accidents

Accidental death insurance comprehensively covers fatalities resulting from various traffic incidents. This includes car accidents, motorcycle crashes, or accidents involving public transportation. Whether it’s a collision between vehicles, crashes on highways, or pedestrian accidents, the policy is designed to provide financial support to the beneficiaries in case of the policyholder’s accidental death.


Slips and Falls

This insurance encompasses incidents that result in fatal injuries due to slips, trips, or falls. These accidents can occur anywhere – at home, in the workplace, in public places, or even during recreational activities. Regardless of the location or circumstances leading to the fall, if it leads to the unfortunate death of the policyholder, the insurance typically provides coverage to the designated beneficiaries.


Accidental Drowning

Deaths resulting from accidental drowning, whether in pools, rivers, lakes, or other bodies of water, fall under the coverage of accidental death insurance. This coverage extends to instances where the policyholder meets an accidental demise due to drowning, providing financial assistance to the beneficiaries named in the policy.


Accidental Poisoning

Accidental death insurance often extends coverage to incidents involving accidental poisoning leading to a fatal outcome. This includes cases of ingesting harmful substances or accidental overdoses that result in the policyholder’s death. The insurance supports the beneficiaries financially during such tragic circumstances.


Accidental Fires

Fatalities resulting from unintentional fires, be it at home, workplace, or other accidental blazes, are generally covered by this type of insurance. Whether it’s a house fire, workplace incident, or other accidental fires leading to the policyholder’s death, the insurance policy provides financial assistance to the nominated beneficiaries.


Falls from Heights

Accidents involving falls from elevated areas, such as falling off a ladder, roofs, or other high places, leading to the policyholder’s death, are often included in the coverage. Whether the fall occurs during work-related activities or any other accidental circumstance, the insurance supports the beneficiaries in such tragic events.

Violent Crimes

Some policies cover accidental deaths caused by violent crimes, including assaults, shootings, or other criminal acts, provided they meet specific criteria outlined in the policy terms. This coverage typically extends to accidental deaths resulting from violent and criminal incidents, offering financial protection to the beneficiaries named in the policy.

Exclusions of Accidental Death Insurance


While accidental death insurance provides coverage for a wide range of accidental incidents, there are specific exclusions that policyholders need to be aware of. These exclusions often vary among insurance providers, but some common exclusions may include:


Illness-Related Deaths

Accidental death insurance usually does not cover deaths resulting from illnesses or natural causes. It’s important to differentiate between accidental death and death due to pre-existing health conditions or illnesses. Any death resulting from a medical condition, disease, or health-related issue is typically excluded from coverage.


Suicide or Self-Inflicted Injuries

Policies often exclude coverage for deaths resulting from suicide or intentional self-inflicted injuries. Insurance providers typically have a specified waiting period before suicide is covered under the policy, usually ranging from one to two years from the policy’s start date.


Drug or Alcohol-Related Incidents

Deaths caused by drug abuse, alcohol intoxication, or drug overdose might be excluded from coverage. Policies may specify that fatalities resulting from the influence of non-prescribed drugs or excessive alcohol consumption are not covered.


War or Military Service

Some policies exclude coverage for deaths occurring during military service, acts of war, or participation in war-like activities. Deaths related to conflicts, military operations, or declared war zones may not be covered.


Engaging in Hazardous Activities

Deaths resulting from engaging in hazardous or high-risk activities might be excluded. These activities could include extreme sports, skydiving, racing, or other dangerous pursuits, as they carry higher risks and might not fall within the scope of coverage.


Criminal Activities

Deaths occurring while the policyholder is engaged in illegal or criminal activities might be excluded from coverage. Insurance providers usually exclude deaths resulting from participation in felonies or criminal acts.


Non-Disclosed Information

Failure to disclose accurate and relevant information during the application process might lead to exclusions. If the policyholder provides false or misleading information that affects the coverage, the insurance company may deny claims based on non-disclosure.

Understanding accidental death insurance and its exclusions involves several essential considerations:

Prior to purchasing accidental death insurance, it’s crucial to analyse the policy’s exclusions thoroughly. This helps in comprehending the limitations of coverage and ensures that policyholders are fully aware of the situations or circumstances that might not be covered.

Also, when looking for accidental death insurance, asking specific questions to insurance agents can clarify doubts and provide a deeper understanding of the policy’s terms and exclusions. Questions about particular scenarios, coverage limitations, waiting periods, and claims processes can be invaluable.


In conclusion, the examination of exclusions is an integral part of understanding the true value of accidental death insurance coverage. Recapitulating the importance of exclusions:

Exclusions significantly impact the effectiveness of an accidental death insurance policy. They describe what incidents or situations will not be covered, ensuring policyholders are well-informed about the limitations and scope of the coverage they’re purchasing.

Readers seeking further information or clarification about accidental death insurance and its exclusions can refer to reputable insurance websites, consult insurance agents, or review policy documents for additional resources.

Analysing exclusions before purchasing accidental death insurance is crucial to ensure adequate coverage and prevent any surprises during claim settlements. By being aware of these limitations, individuals can make informed decisions that align with their needs and expectations for financial protection in the face of unforeseen circumstances.

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.